We were informed which our loan is in the underwriting stage at the moment, but I’m uncertain how that pertains to the general approval process. Does that mean we’re with the finish line, as it were? Is underwriting the last element of the mortgage approval process?”
Let’s start with the short answer and expand outward after that. No, underwriting is not really the final part in the 房貸. You still have to go closing to sign a bunch of paperwork, and therefore the loan should be funded.
The underwriting process itself can be smooth or “bumpy,” based on your financial predicament. The underwriter might request additional information, for example banking documents or letters of explanation (LOE).
So you’re close to the last step – although not quite on the finish line.
Is Underwriting the very last Part of the Mortgage Process?
Let’s check out the overall mortgage process, and how the underwriting step fits into it. Here’s a simplified explanation of your various stages:
Origination: This is the time you first of all make an application for the financing, or get pre-approved with a lender. It’s also once you enter real estate market and begin looking for a house.
Processing: Once you’ve found a property and made a deal to acquire it, the mortgage company will order an appraisal to ascertain the value. They’ll also gather a variety of loan documents and prepare or “process” them for that underwriter’s review.
Underwriting: This is where the rubber meets the road, as we say. Within this step, the mortgage underwriter will review all documents concerning the borrower along with the property being purchased, to ensure they meet all applicable guidelines. The underwriter may additionally identify certain “conditions” that ought to be resolved ahead of final approval and funding. (Learn more about conditional approval.)
Closing: Once the underwriter states that you’re loan is “clear” for closing, it’s time to sign some paperwork! You’ll sign a variety of loan documents, tax records and so on, then you’ll have the secrets of your house. The actual funding normally takes place a day or two after closing, but this can vary.
As you can see, underwriting is just not the last stage from the mortgage approval process. It’s one of the most important steps, because the underwriter is actually the “judge and jury” who decides when the loan could be funded. But it’s not the last step.
Exactly what the Borrower Need To Do at this time
Being a borrower, the ideal action you can take at this stage is to stay in close connection with your loan officer and quickly handle any concerns that arise.
If you’re lucky, you’ll sail from the underwriting process without having a hitch. But if the underwriter does identify certain conditions that must definitely be resolved, work to resolve them as dexipky44 as is possible. This helps maintain the closing on the right track preventing delays.
As an example, it’s common for 房屋貸款 underwriters to request letters of explanation, or LOEs, regarding specific bank transactions. The earlier you provide you with the requested information, the earlier the underwriter can “clear” the borrowed funds for closing. This is what everyone wants, but sometimes it takes some cooperation to obtain there. So stay in contact with your loan officer, that is probably your main reason for contact. And handle any information or document requests as soon as possible.